PayPal to Offer U.S. Users 3.7% Yield on PYUSD Stablecoin This Summer

PayPal Holdings Inc. is set to introduce a rewards program for its PayPal USD (PYUSD) stablecoin, offering U.S. users an annual yield of 3.7% on their holdings. The initiative, launching this summer, aims to boost the usage of PYUSD within the increasingly competitive stablecoin market. PYUSD is issued by Paxos Trust and backed by reserves such as U.S. Treasuries.

The rewards will accrue daily and be paid out monthly in PYUSD. Users can utilize these rewards for transactions through PayPal Checkout, peer-to-peer transfers, or convert them into traditional fiat currency. This move is part of PayPal's strategy to enhance the adoption of its stablecoin, which currently holds a market cap of approximately $873 million. Jose Fernandez da Ponte, PayPal's head of blockchain and digital currencies, and CEO Alex Chriss, have emphasized that this is part of a 10-year journey to build new payment rails and reshape the economics of the payment landscape.

The program will be available on both PayPal and Venmo platforms, allowing users to earn while holding PYUSD in their wallets. This development comes as PayPal continues to expand its cryptocurrency offerings, recently adding Chainlink (LINK) and Solana (SOL) to its supported tokens.

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